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Would flower shops that don't already sell gift baskets be
interested in selling mine?
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What other stores might be interested in selling my baskets?
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How much of a percentage of the price is customary to give to a
retail store for selling my baskets?
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Should I
have a written agreement with the store?
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Do I lose my money if someone steals one of my baskets from the
store?
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Can I get reimbursed if the store catches fire and everything is
destroyed, including my baskets?
Visit to the FAQ Index page for a full list
of all of the frequently-asked questions pages.
Also
visit the Success Articles
section.
The flower shop owner may have an
interest in selling your gift baskets. Visit a store you believe would
be a good match for your baskets. Gauge the store’s popularity. Is the
shop located in a busy part of town? Is there a lot of customer
activity inside? Does the telephone ring sporadically, and are orders
being taken in this manner?
If this is a busy shop and you are
comfortable with the environment, ask the owner if he/she would be
willing to form such a partnership. The worse you’ll hear is “no,” and
if that’s the case, move on to another possible sales source.
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Stores that sell similar products, such
as plush items, stationery, candy and snacks, or services that customers
need daily, are good targets.
A few possibilities are hospital gift
shops, craft consignment stores, mail box centers, confectioners, coffee
shops and pharmacies.
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Offer the retail store owner a small
percentage. Start with 15 percent. If a gift basket’s retail price is
$30, the store owner will receive $4.50, the rest is yours.
It's recommended that the agreed-upon percentage not be
more than 25 percent, if possible. A higher percentage will
substantially decrease your profit margin.
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When you enter into any type of
arrangement that puts your gift baskets into another person’s hands,
that arrangement is best secured through a written agreement.
For our purposes, this is called a
consignment agreement and details all of the facts agreed to by both
parties. This includes, but is not limited to, the number of gift
baskets to be sold, the percentage to be paid to the store owner, and
how often sales will be settled (weekly, monthly, etc.).
Consignment agreement forms are available
in some small business books and on the Internet and are customizable
for your needs.
The CD, Legal Tips
to Keep Your Company out of Court, gives you lots of help to craft
an agreement.
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The store owner will be responsible to
reimburse you for the retail price of the basket as long as this is
specified in your consignment agreement.
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As covered in the previous question,
reimbursement for damaged or destroyed gift baskets must be specified in
your written agreement with the store owner. Unfortunately, there may be
a waiting period for reimbursement, as the owner must wait for a
settlement from his/her insurance company.
Another caveat is that the owner may file
bankruptcy after such devastation, and your reimbursement may be less
than the retail price. It’s very important to craft the best
consignment agreement possible, but even so, problems can occur. Choose
your business partners wisely.
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